BRRRR (Refinance and Repeat ??)

[Kim Ran]

Hi,

I think I've must have gotten myself a bit confused. Okay, so when doing a BRRR, I'm sort of stuck on the refinancing and repeating part. Say I purchase a property by putting 20% down payment on a loan. I rehab it and rent it out. Now, I refinance it at 75% of my new and highly appraised home value. What happens next? With this new Refi cash out value loan, do I pay off the original loan I took out? If so, Say I pay off the original loan and I make back the money I put in the deal originally. I keep hearing now you 'repeat'. But how do I repeat in the sense that I feel like this refinance value is technically a loan, right? How would I reinvest this refi cash out money if it's a loan?aghhhh,I'm so confused on this part. Is it free money?! Please help 🙏😢😭😫